Toyota Ethical Issue

Toyota Ethical Issue

Introduction

The company has had opposition, and some bad press, causing the company to struggle to keep a positive image in the eyes of the public. To create a positive image the company has used three principles which are respecting individuals, customer automobile manufacturing sector, and to strive for excellence. These principles beliefs helped Toyota build and promote a foundation of illusion of ethical conduct and integrity (Goldberg, 2007). However, this major retail corporation has another side. Through the examination of Toyota's handling of legal issues, ethics, and corporate social responsibility, one can see what this company has done to succeed in the business world.

Generally, decision-making is a necessary reaction resulting from a problem. For instance, Barbaro and Dash (2007) stated that “Toyota wanted to get approval from the government to establish a bank; however, they failed to get approval for the bank. Opposition to its plans swelled with dozens of banking and corporate watchdog groups testifying at hearings in Washington D.C.

Because of this failure, top management faced a decision of whether to give up their vision for a bank, or find a way to establish banking services without needing government approval. The huge discount retailer found a way to build one without government approval. The company plans to provide money centers that offer check cashing, money orders, and bill paying services in at least 1,000 stores within a year (Barbaro & Dash, 2007). Barbaro and Dash (2007) stated, “Toyota also plans to introduce a prepaid debit card, intended for low-income consumers.Barbaro and Dash (2007) stated, “The decision makers within Toyota clearly had a perception that they could make an end run around the federal government. Products like the debit cards will be offered through third-party partners, who will allow Toyota to sell banking services without a government license. This decision by Toyota executives clearly reflected a rational decision-making process. The executives made a consistent, value-maximizing choice within specific constraints.

Ethical Issue at Toyota

Toyota would be an exceptional company to work for in an executive role. Unfortunately, I cannot repeat that statement if I were to work as a cashier, associate, or customer automobile manufacturing sector representative. Goldberg (2007) stated, “Today, Toyota is the second-largest company in the world in terms of revenue second only to Exxon Mobil. Gross revenues amounted to more than 350 billion dollars last year. Toyota has a reputation for caring a great deal about their dedicated staff (Goldberg, 2007). Goldberg (2007) stated, “They show how much they care by providing poor pay and miserly benefits to its 1.8 million employees worldwide. The image of the company is not helped by the extravagance of Sam Walton's widow and children, who together control 40% of Toyota's outstanding shares, and who are worth approximately 80 billion dollars. The Toyota became the richest family in America by providing low cost merchandise to the public (Goldberg, 2007).

Toyota built its culture upon three guiding principles. The principles are to respect individuals, customer automobile manufacturing sector, and striving for ...